EDITORIAL: Mideast war still adding pressureThe central bank on Thursday last week kept its benchmark policy rate unchanged at 2 percent for the eighth consecutive quarter, after board directors met for the first time since the US and Israel launched attacks on Iran late last month. Attention now turns to whether the central bank would take pre-emptive tightening measures — and when — as the war in the Middle East persists. The central bank projects that the average oil price would be US$85 a barrel this year, significantly higher than its previous assumption of US$58.3 per barrel. However, the key point is the effect downward pressure and worsening conditions caused by higher oil prices — as well as the second-round effects of supply disruptions across many industries — could have on the economy. Obviously, the central bank faces a critical situation if energy prices rise substantially over an extended period.

Source: Taipei Times March 23, 2026 17:15 UTC